Spirits giant Bacardi is to stop manufacturing in the UK due to a slump in demand for RTDs.

Bacardi-Martini, the company's UK arm, will cease production at its Southampton site later this year in a move that could cost 200 workers their jobs.

"The change in business conditions, cost competitiveness and economies of scale were significant factors in the decision to prepare to cease bottling operations at the Southampton facility," said John Beard, CEO, Bacardi-Martini UK.

"It is very difficult to make a decision of this kind, but it is the right business decision to make for the long-term growth and competitiveness of the company."

Bacardi said it would outsource the bottling of its RTD products elsewhere within the UK. The bottling of Bacardi rum will move to the group's other sites in Western Europe.

The company has yet to make a decision on whether its sales and marketing teams will remain in Southampton.

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